Agreement for Hire

 

AGREEMENT FOR HIRE-PURCHASE OF MACHINERY

THIS AGREEMENT made at ........................ (Give place) this.........................  (Give date) day of.......................... (Give month) 200 ........................(Give year)  Between.............................. (Give name) a company incorporated under the Companies Act, 1956, and having its registered office at........................ (Give address) (Hereinafter called "the Owner") of the FIRST PART and Shri................son of ..................resident of ............................. (Give details)  (hereinafter called "the Hirer") of the SECOND PART and Shri A son of...................... resident of............................. (Give details) (Hereinafter called "the Surety") of the THIRD PART. WHEREAS 1. The hirer hirer has vide vide his letter letter dated.. dated...... ........ ........ ...... (Give date) requested the owner to provide finance for the purchase of … (Give details) 2. The owner has by its its reply reply dated................ dated........................ ........ (Give date) agreed to provide finance for the purchase of …on the terms and conditions laid down in the said letter and the documents to be executed for the said purpose. 3. The hirer has has placed placed an an order order with M/s................... M/s............................ ......... (Give name) for  the purchase of......................... 4. The owner owner has provided provided the the finance finance by making making payment payment of an amount amount of  Rs.… (Give amount) vide cheque No.................... dated..................... drawn on................ (Give details) to the supplier......................... (Give name) NOW IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. The owner owner,, shall shall let and the the hirer hirer shall shall take on on hire from from the............................ (Give date) day of..........................(Give month)  the.......................... with fittings, tools, and accessories, more particularly described in the Schedule hereto 2. On execution execution of these presents, presents, the hirer shall pay pay a sum of of Rs.................. Rs.................. (Give details) to the owner as initial payment by way of hire and shall during the continuance of this agreement pay to the owner at his address by way of rent for the hire of the said.......................... the monthly sum of  Rs...................... (Give details) 3. The first payment payment is to be made made on the................... the........................ ..... (Give date) Day of................... (Give month) and the next and each subsequent payments on the…. (Give date) Day of each succeeding month during the said term. 4. During the continuanc continuance e of the agreement agreement,, the hirer shallshalla. not sell sell or offer offer for sale, assign, assign, mortgage, mortgage, pledge, underlet, let or  otherwise withinterest the said.......................... or any part or parts thereof or deal with any therein;

 

b. keep the the said............ said................... ....... in his own own possession possession and will will not remove the same or any part or parts thereof from the place where such ………. is for the time being situated without the previous consent in writing of the owner; c. not allow allow any lien lien to to be creat created ed upon upon the the said said ...........................whether for repairs or otherwise and will duly and punctually paypremises all rents, taxes, rates, charges and levies payable respect of the wherein the said ........................shall for  in the time being be situated and produce all receipts for such payment to the owner on demand and will protect the said … against distress, execution or seizure; d. use the ........................ ...........................in ...in a skilful skilful and and proper proper manner manner and shall at his own expense keep the said .......................... in good and substantial repair and condition (reasonable wear and tear  excepted); e. keep insured insured the the ................ .............................. .............. during the period period of hiring against any loss or damage by hire or otherwise in the sum of  Rs....................... (Give sum) with an insurance company in the name of the owner and deliver the policy of such insurance to the owner and duly and punctually pay all premiums necessary for  keeping the said insurance effective throughout the period of this agreement: Provided that in case the hirer shall at any time fail to effect or keep effect the said policy by making default in any payment of premium, the owner shall be entitled to effect such insurance and pay the premium to the said insurance company and the hirer shall forthwith pay to the owner all the premiums and other sums paid by the owner; f. not do do or omit omit to do any any act which which may result result in seizu seizure re and/or  and/or  confiscation of the .......................by the Central or State Government or local authority or any public officer or authority under any law for the time being in force. 5. If the said said ................... ................................ ............... .. shall be destroyed destroyed or damaged damaged by fire or  otherwise, all moneys received or receivable in respect of such insurance as aforesaid shall forthwith be received by the owner who shall as the case may require, apply such money either in making good the damage done or in replacing the said..................................... by other articles of  similar description and value and such substituted articles shall become subject to the provisions of this agreement in the same manner as the articles for which they shall have been substituted. 6. The hirer hirer may determine determine the the hiring at any time time by giving....... giving................... ..................... ......... (Give no.) notice in writing to the owner at hisataddress for own the time being and days by returning the said ............................ the hirer’s risk

 

and expense and shall thereupon forthwith pay to the owner all hire charges upto the date of such determination and other sums due under  the agreement and 25% of the balance of the total hire charges still to fall due as settled compensation. 7. If the hirer hirer shall make default default in punctual punctual payment payment of of the monthly monthly sum so so to be paid by him for the hire of the said............................... or fails to perform terms and conditions of this agreement on his to beor  observedthe and performed or if the hirer shall do or cause to part be done permit or suffer any act or thing whereby the owner’s rights in the said......................... may be prejudiced or put in jeopardy, the owner may without notice determine the hiring and it shall thereupon be lawful for the owner to take possession of the said..................... and for that purpose to enter into or upon any premises where the same maybe kept. If the agreement is determined before the property in the said........................ passes to the hirer, the hirer shall forthwith return to the owner, policies and other documents relating to the said ........................ 8. If the hirer hirer shall duly perform perform and observe all the terms terms and conditio conditions ns in this agreement and the covenants on his part to be performed and observed and shall punctually pay to the owner the sums specified in clause 2 hereof amounting (together with the said sum of Rs..................... (Give details) so paid on the execution of this agreement as aforesaid) to the sum of Rs........................ (Give details) then the hiring shall come to an end and the said.................... shall become the property of hirer and the owner will assign and make over all his rights, title and interest in the same to the hirer but until such payments have been made, the.......................... shall remain the property of the owner. 9. In consideration consideration of the owner owner letting letting the said........ said.................... ............ to to the hirer hirer at the rent and under the agreements and conditions hereinbefore expressed, the surety hereby guarantees the due payment of the said rents and all other sums of money which may become payable under this agreement and the performance and observance of the said agreements and conditions by the hirer and this guarantee shall not be prejudiced by the owner neglecting or forbearing to enforce this agreement against the hirer  or giving time for the payment of the said rents when due or delaying to take any steps to enforce the performance or observance of the said agreements or conditions or granting any indulgence to the hirer. 10.The parties to this agreement hereby declare that they have fully understood the meaning of all the clauses, terms and conditions of this agreement and they have accepted and executed this agreement with full knowledge and understanding of the obligations herein. IN WITNESS WHEREOF, the parties have executed this agreement on the day and the year first hereinabove written. The Schedule above referred to :(Particulars of the…)

 

WITNESSES:

Signed by the company within named by it’s authorised signatory

Signed by … the within named hirer 

Signed by … the within named hirer 

Signed by… the within named surety